September 20, 2021
Show me you know me. Sage advice from Satya Upadhyaya at Citi that highlights the importance for wealth managers to use data more effectively, especially ‘dark data’, to help their clients achieve their goals and meet their needs based on their preferences. Data analytics needs to start moving beyond personalization to individualization to nudge clients to target behaviors that will improve their financial position and reduce their level of financial anxiety. That is, show me you know me when you give me advice digitally!
However, many clients never start the journey due to friction points: they are either too busy, not motivated enough, unaware of the value of advice, feel threatened by the complexity, or tend to procrastinate. As a result, they may know support is available but never get beyond first base.
Using individualization enables clients to receive an individualized nudge derived from their data alerting them to a recommended action/s that is provided with simple, easy-to-understand guidance to enable them to make an informed choice:
1. How it will improve their financial position, and when
2. The benefits to them
3. The costs for them
4. What they need to do next, and with whom
These nudges may be triggered by a change in their circumstances, tax regulations, market movements, or potential life events on the horizon for their cohort.
A user experience based on individualization removes the friction points by focusing on delivering, or pushing out, relevant action/s to the client without them having to answer multiple questions to be provided with, or pull out, the most appropriate action/s.
In the developed world around 80% of people have no access to expert advice to improve their financial decision making. At the same time financial anxiety is a major contributor to stress.
Re-designing engagement around individualization will enable wealth managers to deliver better advice, outcomes, and less stress for their clients at scale from the convenience of their mobile phones. They just need to learn how to show their clients they know them when engaging with them digitally. Not an easy task with the arrival of open banking.
Nik Milanović Alex Johnson Kristen Anderson Kelli Nguyen Simon Taylor #challengerbank #ai #finance #bankinginnovation #bankingtechnology #bankingtech #bankingindustry #bankingsolutions #banking #bankingservices #banks #payments #openbanking #digitalbanking #pfm #artificialintelligenceai Lex Sokolin
September 20, 2021